New York Markets After Hours

Applied Materials gains in pre-open amid BofA upgrade

NEW YORK (MarketWatch) -- Shares of Applied Materials
AMAT, -0.88%
rose 2% in pre-open trading after Banc of America Securities upgraded the semiconductor equipment maker to neutral from sell, citing evidence of a surge in flash orders. Analyst Mark FitzGerald expects the company to report fiscal first-quarter new bookings growth of 15% to 17% vs. the company's previous forecast of 7% to 10%, and is anticipating a fiscal second-quarter growth outlook of 20% to 25%. FitzGerald also raised his stock price target to $21 from $14.70, and his 2006 earnings estimate to $1.28 a share from 67 cents a share. The stock was last up 38 cents at $19.88 in Instinet. Meanwhile, he believes earnings will peak in 2006. "We believe the order momentum will be front-half loaded as the flash bookings bubble goes through the system," FitzGerald said. "We estimate peak in orders in the July quarter, and the momentum to roll over in the second half."

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